Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3:42 Assignment Details FA21 - Federal Tax Accounting ACCT-4305-810/Federal Tax Julia is single. Julia operates a window washing business as a sole proprietorship in Texas.

image text in transcribed
image text in transcribed
3:42 Assignment Details FA21 - Federal Tax Accounting ACCT-4305-810/Federal Tax Julia is single. Julia operates a window washing business as a sole proprietorship in Texas. In 2020, Julia had her best year ever. Because she did so well, Julia had custom hats and shirts made with her business logo on them. She upgraded the shirts and hats to the top-of-the-line products instead of getting the cheap ones. She gave the hats and shirts to employees, family, and friends to wear around as advertising. Julia is also a huge fan of theater. She frequently travels to NYC to attend Broadway plays. On one occasion, Julia traveled to NYC for two days. While she was there, she attended four shows and spent her time sight-seeing around the city. Julia also attended a seminar for small business owners. As it turns out, the seminar was amazing and really helped Julia understand how to better operate her business. Julia extended her stay for two additional days to receive training and marketing advice for her business. After her training finished, Julia returned home to Texas. 2020 Income: $105,000 gross income from window washing $10,000 gain on the sale of a Company Y stock held for five months Submit Assignment Previous Next BB Dashboard Calendar To Do Notifications Inbow 3:42 Assignment Details FA21 - Federal Tax Accounting ACCT-4305-810/Federal Tax $10,000 gain on the sale of a Company Y stock held for five months 2020 Expenses: $20,000 of operating expenses (fuel, repairs on equipment, wages to employees) $4,000 for the hats and shirts $1,000 airfare to NYC $800 hotel costs ($200 per night x four nights) $500 business seminar fee $300 for meals on the days she stayed for the business seminar $15,000 loss on the sale of Company X stock held for six months Please calculate Julia's adjusted gross income for 2020. If you deduct an expense, you must fully explain why the expense is deductible. Responses without proper explanation will not receive full credit. Submit Assignment Previous Next BB Dashboard Calendar To Do Notifications Inbow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 7 - Cash Versus Accrual

Authors: Kate Mooney

1st Edition

0071719296, 9780071719292

More Books

Students also viewed these Accounting questions

Question

=+For a different audience? In another tone of voice?

Answered: 1 week ago

Question

=+Can it illicit audience participation?

Answered: 1 week ago

Question

=+Create an open dialogue among users?

Answered: 1 week ago